Tokyo skids as techs shudder
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NEC and other tech-related stocks fell in Tokyo Tuesday.
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SINGAPORE (Reuters) -- Japanese shares posted their biggest one-day fall in two months on Tuesday, and most other Asian markets fell as tech stocks dropped on the back of the Nasdaq's fall to a 2004 low.
Tokyo's Nikkei average ended down 2.07 percent at 10,644.13, with tech shares bearing the brunt of the selling as they did elsewhere in Asia. MSCI's broadest index of shares outside Japan was down 0.54 percent.
"Sentiment towards tech shares seems to be worsening on Wall Street, and investors are unsure whether the trend towards a weaker dollar has really changed," said Masatoshi Sato, senior strategist at Mizuho Investors Securities.
Japan's top maker of semiconductor testing devices, Advantest Corp, fell 4.19 percent following a 1.49 percent slide in the tech-heavy Nasdaq Composite to its lowest level this year.
Digital camera and endoscope maker Olympus Corp lost 4.03 percent, with investors taking profits after a 4.44 percent climb in the previous session.
Taiwan, South Korea and most other regional share markets were also pulled lower by tech woes, as their index heavyweights took a hit.
The only gainer among the region's share markets was Hong Kong, where the benchmark Hang Seng Index was holding on to a 0.31 percent rise at 13,807.51 at midday, despite opening the morning down.
The Hang Seng gain was led by hopes for robust banking earnings, as well as optimism over several IPOs.
South Korean shares ended down 1.47 percent at 864.59, while Taiwan's TAIEX share index fell 1.15 percent to 6,589.23.
"The U.S. stock fall soured technology shares, but financial shares rose again as investors expect state support before the March 20 presidential elections," said Peggy Hsiung, manager of proprietary trading at Pacific Securities in Taiwan.
Shares of KorAm Bank ended flat at 15,000 won, after skidding 5 percent Monday after global financial giant Citigroup said it would buy the bank for about $2.73 billion. (Full story)
Taiwan Semiconductor Manufacturing Co (TSMC), the world's largest contract microchip maker, fell 1.6 percent, tracking a 2.74 percent fall in the Philadelphia semiconductor index.
In Australia, the S&P/ASX200 fell for a third day, slipping 0.3 percent to 3,328.9, with media giant News Corp. and global miner BHP Billiton dragging down the index.
Insurance group Axa Asia Pacific rose 3.7 percent after posting better than expected full-year earnings. (Full story)
In New Zealand, the Top 50 ended off 0.05 percent to 2420.93.
The moves in Asia follow a down day on Wall Street Monday, with the Dow easing 0.09 percent and the tech-heavy Nasdaq dropping 1.49 percent. ( Full story)
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Reuters. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
